Business Exit Planning
Selling a Military School
Unfortunately, many sellers are waiting to list their military schools until the economy fully rebounds. We think that's a mistake because for the right buyers, military schools are a great investment.
Selling a military school? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to military schools that exhibit strong financials and potential for future growth.
Post-Sale Details
As your military schoolsale nears completion, there is a lot of work remaining to be done. There are several details that still need to be addressed. What will the ownership transition look like? Are you prepared to deal with the tax consequences of receiving a significant sum of money in exchange for your business? How will you prepare your employees for your inevitable exit from the business? If there are pending details that still need to ironed out, address them ASAP to ensure a smooth closing and transition.
Maintaining Objectivity
For most owners, the hardest part of selling a military school is remaining objective. You have invested yourself in making your military school the success it is today, but in the eyes of prospective buyers, your operation is only worth fair market value. Although it may be a hard pill to swallow, you need to find a way to introduce objectivity into your sale. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa military school: The income method, the asset method and the market method. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. But regardless of the method that is used, it's always in the seller's best interest to increase revenue and asset values prior to a sale.
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